Fed Holds Rates, Chipmakers Surge Amid Policy Shifts
U.S. stocks moved higher on Wednesday after the Federal Reserve kept interest rates unchanged, a decision anticipated by investors. Chipmakers gained following reports that the Trump administration plans to lift AI chip restrictions. The session remained volatile, influenced by ongoing U.S.-China trade discussions and tariff-related economic impacts.
On Wednesday, U.S. stocks experienced gains as the Federal Reserve opted to keep interest rates stable, a decision foreseen by market analysts. Trading remained erratic throughout the day.
A noteworthy surge in chipmaker stocks followed news indicating the Trump administration's intention to reverse AI chip curbs established during Biden's presidency. This movement formed after the Fed highlighted rising risks of inflation and unemployment linked to Trump's tariffs.
Amid the shifting trading landscape, the Dow Jones saw an uplift supported by Disney's strong quarterly earnings. Fed Chair Jerome Powell remained cautious, hinting at possible rate cuts contingent on emerging economic data, while the market eyed potential trade discussions between U.S. and China.
(With inputs from agencies.)
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